Canadian crypto exchange QuadrigaCZ blames Major bank for any delay

As per the reports of the Globe and Mail on October 8, one of the largest digital currency exchanges of Canada QuadrigaCX is blaming that the legal action from a major bank for delays at the time when customers cash out funds.

The digital currency exchange QuadrigaCX was launched in the year 2013 and based on the Vancouver. This crypto exchange is known as the oldest and first exchange in Canada which gets its license from the Financial Transaction and Reports Analysis Centre of Canada (FINTRAC). During the press time, the exchange Quadriga has the daily trading volume almost around $600000 on per CoinMarketCap.

Since January, the Exchange Quadriga reportedly state that the exchange faces different difficulties in accessing to $21.6 million of its funds. At that time the Canadian Imperial Bank of Commerce (CIBC) froze over five accounts that belong to the payment processor of the exchange, Costodian Inc., and as well as its owner Jose Reyes. Later the bank stated that the accounts purportedly froze out due to an inability to identify the real owners of the funds.

As per the reports of the Globe and Mail, CBIC also requested the court to withhold the disputed and scattered funds and then decide whether they belong to Costodian, QuadrigaCX and to the 388 users who have deposited that fund. In additions to this, Quadriga also said that “This court should not succumb to the bank’s unsubstantiated and highly offensive speculation that there must be shady dealings afoot because Quadriga’s business is a trading platform for individuals trading in cryptocurrencies.”

The Quadriga repeatedly told and explained to the court that the bank froze these funds by mistake and also claims to be the undisputed owner of the greater part of the funds because they do not have any evidence to compete for these claims.

As per the research and study of CIBC, from the date Dec. 4, 2017, to Feb. 20, 2018, a total of 388 users generally deposit a total amount of $51.8 million into the accounts of the exchange. But later after some time, some of these funds were withdrawn and leave about $21.6 million in their accounts.

In addition to this, the CEO of the Quadriga, Gerald Cotten said in their report that the legal matters has resulted in some delays for a ‘small fraction’ of the 350000 users of the exchange. But all of these allegations are not proven in the court according to the Globe and Mail. At later, Cotten explained that “There are currently delays for some specific withdrawal options, particularly due to the fact that CIBC is withholding tens of millions of dollars that belong to us that were in an account of one of our payment processors.” In a previous report of the Globe and Mail, Quadriga has told that the clients that banks in Canada are generally conspiring against several crypto businesses. The total number of participants in the crypto space has been shut out generally shut out by these banks is staggering, according to Cotten.